- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Deductions & credits
@muralx , @Inugasuki , while generally agreeing with comments by my colleagues @RalphH1 & @ThomasM125 for the type of cases that you are considering viz:
(a) A US person ( citizen / GreenCard), with a foreign tax home;
(b) Having US sourced passive income such as Interest / Dividend / Barter Gain/loss ( capital or otherwise) / supplemental incomes reported on schedule -E;
(c) US and that foreign country having a tax treaty including the " double taxation" clause
(d) certain incomes are taxed by both US and that other country and actually taxed by both countries under in its own laws
does require these US sourced incomes to be "resourced by treaty" -- {article Number shown on the return/ form 1116). The use of form 8833 in such cases in not required because we are talking about individuals and not entities ( where disclosure of the underlying treaty assertions etc. are shown on form 8833).
Note that form 1116 , while recognizing the full amount of foreign income taxes paid/levied , limits the current year credit to the lower of US tax liability on the income and an based on the ratio of foreign source income to world income.
Does this make sense ? Is there more I can do for you ?
pk